Rocket Lab Stock Is A Buy

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Rocket Lab Stock Is A Buy

Rocket Lab (Rklb) Stock Is A Buy?

The Rocket Lab (RKLB) stock had a great bull run in the last 12 months. The shares went from $4 a piece to around $30 in January 2025.

If you look at it, that's a return of almost 7x (700%) in a span of one year. During that time, investors were really optimistic about the Rocket Lab (RKLB) as the company was launching rockets and building its capabilities.

Company Plans To Launch Neutron Rocket

However, the sentiment has once again turned sour for the Rocket Lab (RKLB). There are reports that the company will not be able to get the Neutron rocket ready this year. This has led to a major decline in the Rocket Lab (RKLB) stock.

If we look at Rocket Lab (RKLB), it is in a similar position to SpaceX. Everyone knows it is not easy to launch a rocket into space, and a lot of things can go wrong.

But, it doesn't change the fact that Rocket Lab (RKLB) is one of the few companies in North America which have succeeded in launching rockets. The Rocket Lab client list includes the government and commercial contractors.

This year, the company is planning to launch a new rocket which will be able to handle a larger payload. This easily means the company will be able to earn more money from each launch.

Based on all the conditions, it doesn't seem that Rocket Lab (RKLB) is a good stock to buy right now. The firm has a $9.5 billion market cap, and the success of the Neutron rocket will send it to the moon.

But, even the new rocket wouldn't be enough to generate the required amount of revenue that justifies the stock trading price.

So, for now, it is best to pick solid stocks which have a history of being profitable in what they actually do. The rocket launching business isn't something that's profitable right now & will stay that way for a decade or two!

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